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tv   Your Bottom Line  CNN  August 7, 2010 9:30am-10:00am EDT

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said in fact that they are responsible for this, taking credit for it from a website. we are trying to independently confirm that but its a fast moving developing story this morning. we'll bring you more live updates at the top of the hour. right now going to hand it over to "your bottom line." so much for new rules, credit card companies find new ways to charge you. don't worry though, we've got you covered. and also, how do decode that job listing that you've got your eye on. the inside scoop on how to land your next gig. and also ahead, the list that everyone is talking about this week -- it's all about protecting one of your most prized possessions. it's a show that saves you money and it starts right now. the card act was passed to protect us all from sneaky credit card fees and sky-high interest rate hikes. but credit card companies -- no surprise here -- are now offering more and more enticing incentives with new fees almost to make up for all that lost
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revenue. so what do you need to look out for? here with great advice, carmen wong ulrich, a personal finance author and very good friend of this show. thanks for coming on. i was looking at this pew charitable trust study that came out. it said credit card fees when you look at the annual fee have gone up 18% from july 2009 until march of this year. so even after the card act you have these fees going up higher and higher. interchange fees and swiping fees. that's a big deal for folks. >> credit card regulations losing the business over $300 billion -- million dollars. but here is the thing. interchange fees is a little bit of a kind of secret here. us as consumers think credit card companies make their money just off of our interest payments or fees or balance transfer fees. they make a lot of money, $20 billion a year, off of the other side of the transaction, the swipe. >> that's why some stores only accept cash. >> every time you swipe, they get 2% to 3% of every transaction you have. now the reason why a lot of
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retailers only accept cash is because of that 2% to 3% that they lose on every transaction. but now with financial reform that's gone through, retailers can now charge two different rates. so they can say this costs this much for you because you are using a credit card and this will cost less for you because you are using cash. however, will they do it? that is the question. will retailers give a discount to most cash buyers. >> people -- i like to use my credit card because i get points. i get airline miles. some people get cash back but it's those cash-back cards that you have to be a little more careful with now. >> we are being flooded with cash-back offers because what they want to do is -- now remember in the recession, we're using our credit cards less, we are building less credit card debt, we're bringing down our balances. how are they going to make more money? they want us to swipe as much as possible. to encourage that they'll say we'll give you back 2% to 5% of all of your transactions. you're going to swipe an get cash back, but now a new study came out from the federal reserve of boston saying that
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people who use cash are basically subsidizing people like you and me who love those rewards and i'm guilty of this, too. i use my card for everything -- because rewards and points because we are basically getting a discount and they're not. they're paying a higher retail price even though they're using cash. >> it's something you have to watch out for. you get maybe four credit card offers a week. more and more are these professional or corporate card offers. you wonder why are those coming, what does it mean for consumers, do you want to stay away from those. >> first, go to optout to make sure you don't get those offers all the time. i get three or four a week based on cards already have for their new professional cards. professional cards do not fall under card act regulations. so be very, very careful. even though it says the name of your business, you are personally responsible and they don't have to follow the rules. >> they're going to have to address that down the road. >> it is going to be addressed.
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those swipe fees are going to be looked at in the next eight months at a treasury. >> one big protection that passed through congress because of the card act was giving every consume 2er 1 days from the time you get your bill to the time you pay it before you get charged for late fees at all. some credit card are shortening billing cycles. >> they're not supposed to do that of course. if they're doing it with your card, go to and file a complaint. the way they get around it kind of legitimately, the card act also says that if you are not open for business on weekends or holidays, then the actual due date has to fall on the next business day. card issuers are saying we're open weekends and holidays so they make you late. don't be afraid to call up and complain if that happens to you. >> interest rates. people were dealing with sky-high interest rates but not just at the heights. you can still have a very high interest rate even with the card act. what can you do to bring it down if you have one? >> our chance of getting this done these days, not so good.
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because rates on the whole have risen so much because credit is so tight. the best bargaining position that you can be in is to make sure that you are good borrower, that you carry a -- pay your balance off on time, your credit rating is good and that you have other cards with lower rates. if you call up your card company and say i have another card that has another rate, threaten them with that and see what they do. >> i've had friends do that. you can really negotiate. they want to keep your business, so making money off every swipe. thanks so much. saving is always important but when it comes to a lot smarter about what you spend and how you do it and while it may seem like we've all cut back on our spending in light of the current economy, for some people their spending has actually gotten worse. our good friend jeff gardere is a clinical psychologist here to talk to us about, it is all a mind game. right? it is all about what you tell yourself you can or can't spend. i think the first question, jeff, is compulsive spending? i was surprised to learn it's gotten worse for people. >> it certainly has, poppy.
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what we've seen is that compulsive spending is not based on what you make. a lot of people feel that, well, if you're wealthy, you have a lot of money, then you can just go ahead and buy whatever you want to buy. but it is not really about that. compulsive spending is almost like a self-medication. it makes you feel better when you go out there and spend. >> just for a short am of time it makes you feel better. >> you get that high right away, then of course the crashing low comes when you have to look at your credit card bill later on or realize that you bought something that really is worthless to you and you have about ten of them in the closet already. >> i think the key question is, can i return this. that's a key question. there are also people that will say i'm cutting back on smaller items, i'm going to bring my lunch to work an then i can go out and spend on the big items. >> not very smart. all it is is an intellectualization where they say, okay, well i'm saving a little bit of money, therefore i can go out and buy higher ticket
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items. it reminds me a lot of my wife who always says to me, poppy, "you know what? i saved you a whole lot of money when i went out shopping." and my response to her is, "if you really want to save me money, don't go shopping in the first place." stop playing those little mind games with yourself or with me. >> it is great input. we'll have you stick around, please. we want to talk about the difference between impulsive and compulsive spending. both need to be addressed. we'll address this right after the break, how you can make yourself a smarter shopper. yourself a smarter shopper. coming up in just 90 seconds. t.
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back now with clinical psychologist jeff gardere. thanks for being here. talking about spending, compulsive versus impulsive spending. what's the difference here? >> impulsive spending is when you're not thinking about what you're doing. you're just going with the high, just going with the feeling. it looks good, let me do this and you aren't thinking about the consequences. compulsive shopping is a lot more serious. this is an addiction, something that you have to do and more of that self-medication that i was talking about if you're depressed, if you're anxious, if you have all sorts of other issues going on, you have to shop in order to feel better. really, what you should be doing is addressing what the real issue is. so compulsive shopping is much more dangerous. though impulsive shopping is not smart either. >> let's address them both. first impulse of shopping. what can people do to curb this? because they ultimately have control of their own wallets. >> yeah. i think basically -- you've heard it from your other experts and you know this -- try not to
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travel with credit cards. try to have cash. try to have a debit card. the most important thing is be ready to pay for the consequences right then and there. that may dissuade you from the impulsive shopping. just doing it just for fun. >> what about compulsive spending? you say this is probably a sign of much larger issues. >> much deeper issues, much more complex psychological issues. first and foremost, understand why you are shopping and why you have to shop. why you want to shop. and then secondly, look at some sort of support group. look at other people who are going through the same thing and talk to them about it. look at getting some sort of professional care. but the other thing is, throw out that habit if you can and replace it with something healthier such as working out or being able to talk with someone about your issues or getting involved in athletics or what have you. >> doing something else with your time other than shopping. >> something that makes you feel much, much better. >> i think a lot of americans
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don't want to admit they have this issue but i would assume it is pretty prevalent? >> it is pretty prevalent. i work with many patients who are compulsive shoppers and they keep it to themselves, they don't share it, they don't talk to their spouses about it. it is a secret. it is something that's very shameful for them and they don't want to talk about it. step number one is being able to admit that you have that problem and sharing it with someone who can help you get an intervention. >> this is great advice, thanks a lot, jeff. how to read a job posting for exactly what it is so your resume is the one that's gets noticed.
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the jobs report out this week reinforces what we already know. so many people out there are still struggling to find work, and all of you who are out there reading the classifieds know that these job postings can be pretty tough to navigate sometimes. we're going to decode them for you. yahoo! hot jobs senior editor
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charles purdy joins us from san francisco to do that. thanks for coming in. >> thanks for having me. >> the first question is when it comes to your resume, i've got an lot of resumes from folks that are just form resumes, they don't customize them to the position. you have to do that right now when there are so many people applying for these jobs. right? >> that's absolutely true. the days of what we call spray-and-pray where you spray your resumed far and wide and pray that someone will call are over. it's helpful to look at a job posting as a problem that an employer is trying to solve. you have to explain to that employer how you are going to solve that problem for it. >> well, when you look at that, you see all of these qualifications on the job postings. i mean it's not odd for a job posting to have ten different qualifications starting with requesting you have 10, 15 years of experience in your field. do you really need to meet all of those qualifications to apply? >> i would say no. i look at those lists of
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qualifications as sort after dream wish list that employers have. the first three or four are the must-haves usually. then they go on to describe the perfect candidate who probably doesn't exist. my rice is if you meet the first three or four qualifications and you are confident that you can do the job, then you should go ahead and apply. and use the words that are described in those qualifications to sort of tweak your resume. those are the words that are likely programmed into the employer's software key word reader if it has one. that will help you make your resume into the "yes" pile. >> into the pile that they even look at for more than a second. i know i've seen managers just flipping through resumes like that. you want to stand out. when you talk about customizing your resume for the specific job responsibilities, what do you think the best way is to do that? you want to talk about experience, right? >> absolutely. you want to talk about your experience. look at the experience requirements that the employer has put in the job posting and again, use the words they use in
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your resume. if they use the word "supervise" but your resume has the word "manage," change "manage" to "supervise." these things are really important in helping you get past the screeners, whether it is software or a person looking through very quickly at your resume. >> you can't just mail it in and say, well, they got it and if they like me, they'll call me. you really have to do extra legwork these days, don't you? >> you do. that's actually something i hear very often from hiring managers and recruiters. people fail a simple test -- the how to apply instructions at the bottom of a job posting. look at those very carefully. if they say to put specific words in your e-mail subject line, or if they say to contact someone in a specific way on a specific day, pay attention, because failing that, to meet those requirements, will get your resume tossed out. the first step to landing a great job is getting the right education. are you in luck because the 2011
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best colleges list is out from the schools with the best professors to the top party schools and where you're going to save the most money. tra that's straight ahead. ♪ [ male announcer ] like summer it's here, but not forever. the lexus golden opportunity sales event. don't wait to enjoy legendary lexus quality at equally legendary prices. see your lexus dealer.
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it is the list that teenagers and their parents wait for every year. princeton review's annual best colleges rankings. for now forget the top party school and focus on what really matters -- how to pay for college. here it is, "best 373 colleges." joining us now, the author of the princeton review. thanks for coming in. >> thanks for inviting me. >> start out first with the school that offers the best financial aid package because this is critical. college is expensive. if you can get financial aid, it is a big deal. what's the best bet there? >> number one school in our great financial aid list is franklin w.olin college, a small engineering college outside of boston. a fairly new school, about ten years old. 330 kids undergrad. $52,000 sticker price but they offer students a half tuition scholarship as soon as they're admitted. all students. >> that's phenomenal. >> for those students that
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demonstrate need after that, dee need after that, they will fill that in for grants rather than loans. for any student, that is a wonderful bargain. >> when you look at where the professors are the best, that's a lot of times what you are paying for, great, great professors. what school ranks at the top of the list? >> number one this year is reed college. this is ranked by students. we reached out and received information from 122,college students. they talk about the professors, they are accessible and everything you want in the professor. >> they call their professors heroes. one really important thing at college is career services. what are the programs, the resources available for you when you start looking for your job as you are getting ready to graduate? what school has the best career
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services. >> number one on our best career services. this is only the third year we put this in, is northeastern university. northeastern is a lovely school. it is celebrating its 100th year working with the cooperative program. to get a degree, it is a five-year undergraduate degree, one full year spent outside the classroom. there are over 2000 choices. a would be dnderful leg when ito experience. >> do all students take advantage of that? >> they have to. when you go into northeastern, it is a five-year degree, one year outside of the classroom. >> what about overall student happiness? >> brown university. >> current college students, we asked them their experiences. they answer how happy are you? when you think about happiness, academic happiness, campus culture happiness and with
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financial aid, we have 100 best value, 50 public and 50 private. >> for brown, you can take it all pass/fail. the stress level goes down when you talk about brown. >> all of your classes are pass fail. i think there is a great relief. >> the president of cnn went to brown. >> we are a big fan. >> the best forms. >> bryn mawr. wonderful school. all women's college outside of philadelphia. about 1800 students but the dorms are palatial. a truly palacelike setting. >> finally, best party school. it isn't where i went to college. >> university of georgia is number one. it has been a usual suspect on our list.
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this is the first year it is in the number one spot. it is a huge school. when we look at our party school list, we look at five different areas. we want to rate or ask the consumption of beer, hard liquor, drugs on campus, hours of study spent outside the classroom. >> the more they drink beer, the better the party school is? is that how we rate it? >> that is one of the factors. those are the five factors. we have had those factors over the last 19 years. our methodology has stayed consistent. reaching out to the current college students and asking them their experience academically and socially. >> great list. appreciate it. >> great to be here, thank you. almost 10:00 a.m. on the east coast, 7:00 a.m. out west. do you know where your car is? we are going to tell you coming up next. and discover more new ways than ever to enjoy crab. starting at $14.99, only during crabfest at red lobster. starting at $14.99, at pso, we set out tot your dog to discover the science inle.
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>> we're talking grand theft auto. we are not talking about the video game. here is the list of the most stolen vehicles in the u.s. according to the highway lost data institute. number five on the list, we have the infinity g-37 coupe. number four, the chevy avalanche and the dodge charger at three. the chevy silverado, that truck takes the number two spot. the number one most-stolen vehicle on the list, the cadillac escalade. no matter what you drive, how can you protect yourself against your car getting stolen? peter's list, great list. the escalade, time and time again, since 2002, that's been at the top of the list. why? >> i talked to gm. they don't know for sure why it is the top of the list. here is something interesting. if you look at the top ten. gm's entire large truck and suv
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lineup is represented in the top ten. seven of the top ten. clearly, there is something wrong. clearly, it is not surprising the number one would be the escalade. it is one that thieves are going to target the most. >> it is flashy, has rims, the hot one you are going to look at to steal. clearly, gm needs to do something more on the security on these vehicles to protect them. word gets around. it looks to me like the car chiefs a thieves are looking at these vehicles as an easy mark. gm needs to get on top of that. >> when people buy a new vehicle, do they look at this list in terms of whether they would buy a car? your insurance costs are higher if the car is on this list. >> what people do do is call your insurance company before you buy a vehicle and run some options over them. if i buy this one, how much is my insurance going to cost?
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if i buy this one, how much is my insurance going to cost? that is one of the biggest claims that a car can have. you have to pay for the entire thing. so this is a big factor in the insurance costs. don't look at this with calling your insurance company. ask them. >> when it comes to the least stolen cars, because this is important, not just cars that people would expect. the number one on that list, the satu saturn vue. the nissan serrano and the bmw 5 series and the enclave and the volkswagen beetle. >> there may be random flux weighs. clearly, it is not the case that thieves go after the more expensive cars. they tend to have better secures. bmw 5 has motion censors. as soon as someone reaches in, it goes off.
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it has motion krcensors and mechanical locks that are extremely difficult to get through and get that door open. they have gone to that extra level to make that car hard to steal. thieves stay away because it is too much trouble. >> what are the tips to prevent theft? there are simple things to do yourself. >> a lot of it has to do with where you park your car. i don't dispute not parking in a bad neighborhood. whatever neighborhood you are in, when you are looking for a place to park your car, look for a place where your car can be seen by everybody from every angle. a car thief that's going to mess with that car, they have to do that knowing they can be seen any time by anybody. you can have two parking spaces ten feet apart. one car gets broken into all the time. the other never gets touched. the one where they get broken into all the time is obscured by a tree and not under a street light. it gives the thief a place to work. >> don't leave your car with the engine running.
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